Tools for everyday decisionsHome Loan & Rent vs. Buy Calculators
Explore your loan repayment schedule and compare the long-term financial outcomes of renting and buying a home.
Your home loan
Monthly amortization schedule
| Month | Payment | Principal | Interest | Balance |
|---|
Assumes a fixed interest rate and monthly reducing balance. Fees, insurance, prepayments and rate changes are excluded. Actual lender rounding and repayment schedules may differ.
Property and financing
All starting values are illustrative, not market quotes.
100% models a cash purchase.
Your estimate of stamp duty, registration, brokerage and other purchase costs, as a percentage of price.
Applied to the projected sale value.
Rent, ownership costs and growth
Maintenance, property tax, insurance and repairs. Exclude the EMI.
Assumed effective annual return on invested cash. Not guaranteed.
Starting funds and cash-flow assumptions
Year-by-year wealth comparison
| Year | Home value | Loan balance | Buying wealth | Renting wealth | Buy − rent |
|---|
How the comparison works
- Both options start with the same available funds: the down payment plus upfront purchase costs.
- The buyer spends these funds on the purchase. The renter invests the equivalent amount immediately.
- Each month, both options receive the same budget—the higher of that month's rent or ownership outgo. The option with lower housing costs invests the difference at the end of the month.
- Ownership outgo is the EMI plus ownership costs. EMI payments stop when the loan is fully repaid.
- Buying wealth equals the home value after selling costs, less outstanding debt, plus the buyer's investment balance. Renting wealth equals the renter's investment balance.
Rent and ownership costs change once each year. Property and investment growth use equivalent monthly rates derived from the assumed effective annual rates. Loan interest uses the annual quoted rate divided by 12.
Results are nominal and exclude investment taxes, capital gains tax, home-loan tax benefits, rent deposits, moving costs, major one-off renovations and any costs you have not included. Negative buying wealth represents a shortfall after selling the home and settling the loan.
Frequently asked questions
Is a lower EMI enough to decide whether to buy?
No. Upfront costs, maintenance, loan interest, rent changes, property values and the opportunity cost of invested money all affect the financial comparison.
Are these property prices and returns forecasts?
No. Every growth rate is an editable assumption. Actual property and investment outcomes may differ substantially.
Does the model include the down payment twice?
No. The buyer uses it toward the property, reducing the loan. It is not separately deducted again from final home equity. The renter invests the same starting funds instead.
Can the comparison run beyond the loan tenure?
Yes. Once the loan is repaid, the model stops EMI payments. Ownership costs continue and the monthly investment difference is recalculated.
Planning estimates only—not a loan offer, valuation or personalized recommendation. Lifestyle, flexibility, location and affordability also matter. This code calculates locally without sending your financial inputs to a server.